TCI Chpt. 11-12

Question 1

Eminent domain

Answer 1

The power of the government to take an individual property for public use if the owner is fairly compensated

Question 2

Takings clause

Answer 2

A clause of the Fifth Amendment to the Constitution stating that the government must pay private owners when their property is taken for public use under the power of eminent domain

Question 3

Regulatory agency

Answer 3

A unit of government created to set and enforce standards for a particular industry or area of economic activity

Question 4

Price-fixing

Answer 4

An legal, anticompetitive practice in which two or more firms agreed to set a common price for a good or service

Question 5

Bid rigging

Answer 5

An illegal, anticompetitive practice in which two or more firms agree in advance which one will submit the lowest bid for a contract offered through a competitive bidding process

Question 6

Market division

Answer 6

On illegal, anti-competitive practice in which two or more firms agreed to divide a market among themselves, selling only to certain customers or in certain geographic areas

Question 7

Merger

Answer 7

The combining of two or more separately owned firms into a single firm

Question 8

Deregulation

Answer 8

The process of removing government restrictions on firms in order to promote competition or encourage economic activity

Question 9

Public provision

Answer 9

The supply of a good or service by the government

Question 10

Voucher

Answer 10

A coupon used to purchase a specific good or service

Question 11

Market-based policies

Answer 11

A policy approach, often applied to environmental policy, the relies on market incentives, rather than regulation, to influence behavior

Question 12

Corrective tax

Answer 12

A tax on producers that is designed to reduce negative externalities, such as pollution

Question 13

Cap And trade

Answer 13

A policy that limits the amount of pollution a firm may legally emit each year but allows firms to trade with each other to obtain additional pollution permits

Question 14

Pollution permits

Answer 14

A government license, issued under And trade system, that allows a producer to emit a certain amount of pollution

Question 15

Common resource

Answer 15

A resource that everyone has access to and can be easily overused or destroyed

Question 16

Tragedy

Answer 16

A circumstance in which a shared resource is overused or destroyed because users take no responsibility for its preservation

Question 17

Toll

Answer 17

A fee for the use of the common facility, such as a bridge or highway

Question 18

Quota

Answer 18

The maximum amount of the resources that a person is allowed to use or consume in a given period of time

Question 19

Privatize

Answer 19

To convert a publicly owned resource or institution to private ownership

Question 20

Government failure

Answer 20

An inefficient allocation of resources caused by government intervention in the economy

Question 21

Log rolling

Answer 21

A practice in which lawmakers agree to vote for each other’s legislation

Question 22

Economic stimulus

Answer 22

A policy or action designed to promote business activity and stimulate economic growth

Question 23

Quintiles

Answer 23

Any one of the five groups of the population that is been divided into fifths for the purpose of data analysis

Question 24

Poverty rate

Answer 24

The percentage of the population that is a family income below a government define threshold, or poverty line

Question 25

Poverty threshold

Answer 25

The estimated minimum income needed to support a family

Question 26

Economic mobility

Answer 26

The ability of people to raise the standards of living and improve the economic status

Question 27

Income redistribution

Answer 27

A policy designed to reduce income inequality by taking money from the rich and distributing it to the poor

Question 28

In kind transfers

Answer 28

A government benefit in the form of goods or vouchers, such as food stamps and public housing

Question 29

Earned income tax credit

Answer 29

A tax reduction given to low-wage workers when they filed your federal income tax forms

Question 30

Unemployment insurance

Answer 30

A government program providing limited cash payments to workers who lose their jobs

Question 31

Means tested programs

Answer 31

A government benefit that is tied to family income so that benefits are reduced as income rises

Question 32

Regulations

Answer 32

The establishment, by the government, of rules aimed at influencing the behavior of firms and individuals